Ingenia Communities Group · ASX:INA
Ingenia Communities — H1 2016 Earnings Presentation
30 slides from Ingenia Communities's earnings presentation, Feb 23, 2016
Slide 1: Ingenia Communities Group 1H16 Results Presentation
For personal use only Ingenia Communities Group 1H16 Results Presentation LAKE CONJOLA 23 February 2016
Slide 2: Our Business
OUR BUSINESS For personal use only Ingenia is a leading owner, operator and developer of affordable, Lifestyle, Retirement and Leisure Communities p2
Slide 3: 1H16 Highlights
1H16 HIGHLIGHTS For personal use only Rental yielding asset base now 75% of portfolio Well advanced with divestment of DMF portfolio STRATEGY Portfolio of Lifestyle Parks increased to 25 parks – acquisitions in high quality metro and coastal markets Quality pipeline of acquisition opportunities in p
Slide 4: Increasing Focus on Stable, Cash Yielding Assets
INCREASING FOCUS ON STABLE, CASH YIELDING ASSETS Supplemented by growth in development returns For personal use only 31 DEC 2015 ASSET TARGET ASSET ALLOCATION ALLOCATION 14% 28% ~25% ~75% 84% DMF Rental Villages Rental Villages TARGET DEC 15 Rental income Rental income $462.6M Continued growth TARGE
Slide 5: Performance and Capital Management
PERFORMANCE AND CAPITAL MANAGEMENT For personal use only South West Rocks, NSW p5
Slide 6: Key Financials
KEY FINANCIALS For personal use only KEY FINANCIAL METRICS 1H16 1H15 CHANGE • Significant increase in underlying and statutory profit underpinned by Statutory profit1 $10.8m ($1.0m) NM significant EBIT contribution from Lifestyle Parks Revenue $52.2m $28.7m 82% • Lifestyle Parks key driver of revenu
Slide 7: Distributions Growing
DISTRIBUTIONS GROWING 1H16 1H15 EBIT up strongly - core business performing well ($m) ($m) For personal use only ● Garden Villages Continuing operations • Earnings stable despite reduced asset base • Garden Villages 5.4 5.4 • Delivering strong cashflows ($12 million rental • Active Lifestyle Estates
Slide 8: Capital Management
CAPITAL MANAGEMENT For personal use only Extension of facility providing additional debt capacity Australian debt 31 DEC 15 ($m) • Additional $25 million funding from Total facility1 200.0 Bank of Queensland (in place Feb 2016) Total debt drawn 120.9 Drawn debt of $120.9 million at 31 Dec 2015 Bank
Slide 9: Strategy
For personal use only STRATEGY p9
Slide 10: Ingenia's Portfolio Is Dominated by Seniors Rental Communities
INGENIA’S PORTFOLIO IS DOMINATED BY SENIORS RENTAL COMMUNITIES For personal use only Ingenia has Australian 64 communities and growing NT Portfolio now over 8 $470 QLD million SA 9 WA 32 NSW 10 VIC 25 LIFESTYLE PARKS 31 RENTAL VILLAGES 8 DMF VILLAGES 5 TAS Note: Includes South West Rocks (to settle
Slide 11: Operational Review
OPERATIONAL REVIEW For personal use only p11
Slide 12: Garden Villages (Seniors Rental)
GARDEN VILLAGES (SENIORS RENTAL) Strong, stable cashflows KEY ACHIEVEMENTS 1H16 KEY DATA 1H16 1H15 For personal use only Total properties 31 34 Occupancy and rent growth driving Total units 1,629 1,801 operational performance Av. weekly rent1 $313 $305 • Revenue and EBIT maintained despite sale of t
Slide 13: Acquisition of BIG4 Broulee Beach
ACQUISITION OF BIG4 BROULEE BEACH Expands South Coast cluster – increases portfolio to 26 assets BIG4 BROULEE BEACH HOLIDAY PARK, South Coast, NSW For personal use only Acquisition price $5.5 million • Leasehold annual and tourism park located 90 km south of Conjola Lakeside – building out South Coa
Slide 14: Active Lifestyle Estates
ACTIVE LIFESTYLE ESTATES Growing portfolio dominated by rental returns KEY DATA 31 DEC 15 31 DEC 14 Rental revenue increasing as acquisitions and new home sales contribute – stable portfolio delivering >9% yield For personal use only Total properties 24 16 Permanent sites 1,550 • Average weekly site
Slide 15: Active Lifestyle Estates: Highest and Best Use Drives Mix
ACTIVE LIFESTYLE ESTATES Highest and best use drives mix For personal use only In select coastal parks, tourism generates significantly higher returns than permanent sites Tourist cabin – 72 m2 Permanent site - 135 m2 Average rent $127 p/n Rent from senior $133 p/w @ 68% occupancy = $6,900 per year
Slide 16: Active Lifestyle Estates: Short-Term Rental
ACTIVE LIFESTYLE ESTATES: SHORT-TERM RENTAL A stable market with significant cross selling potential Campervan & caravan registrations The Caravan and Camping sector is a large and growing at more than 2.5x cars For personal use only relatively stable industry which is rapidly evolving • Caravan and
Slide 17: Active Lifestyle Estates: Short-Term Rental
ACTIVE LIFESTYLE ESTATES: SHORT-TERM RENTAL Enhancing returns through active management Short term sites 1H16 KEY ACHIEVEMENTS (by location) For personal use only Metro, 8% Regional, Continuing to build presence in key coastal and metro 18% locations with focus on quality and value • Acquired 350 ad
Slide 18: Active Lifestyle Estates: Development
ACTIVE LIFESTYLE ESTATES: DEVELOPMENT Driving pipeline and program 1H16 KEY ACHIEVEMENTS For personal use only Development portfolio 1H16 1H15 Change Pipeline expanded to 1,630 potential sites, securing development in key parks Total active development projects 10 9 • New large-scale projects secure
Slide 19: Active Lifestyle Estates: Development
ACTIVE LIFESTYLE ESTATES: DEVELOPMENT Maximising returns through active management 1H16 KEY ACHIEVEMENTS For personal use only Growing capability in securing development approvals Development Pipeline • Approvals achieved for 385 sites in past eight months (number of sites) • Lake Macquarie developm
Slide 20: Sales Platform
SALES PLATFORM Strong growth in sales and settlements Settlement of 58 homes worth $15.4 million1 to 13 17 For personal use only 31 Dec 2015 • Lake Macquarie sold out in four months, Stoney Creek showing strong ongoing demand 39 43 Contracts on hand for 39 homes worth over $10 million1 at 31 Dec 201
Slide 21: Settlers Villages (DMF)
SETTLERS VILLAGES (DMF) Returns stabilising as developments complete KEY DATA 1H16 1H15 KEY ACHIEVEMENTS 1H16 For personal use only Total properties 8 8 • Development profit reducing as existing stock sold Total units 838 838 down Occupancy 96% 93% • In 1H16 14 new unit settlements totalling $2.2 mi
Slide 22: Outlook
OUTLOOK For personal use only ► Optimise performance of existing assets ► Complete DMF divestment to recycle capital into additional lifestyle parks ► Continue sales growth as new projects launch to achieve target of 120 sales for FY16 ► Secure future growth in lifestyle parks business through acqui
Slide 23: Appendices
APPENDICES For personal use only Active Lifestyle Estates Chambers Pines, QLD p23
Slide 24: Appendix 1: Underlying Profit
APPENDIX 1: UNDERLYING PROFIT Lifestyle Parks becoming established as key driver of earnings growth For personal use only 1H16 1H15 (A$m) (A$m) Comments (1H16) Continuing operations - Garden Villages 5.4 5.4 Stable earnings off smaller asset base - Settlers Lifestyle 2.0 2.7 Development profit decre
Slide 25: Reconciliation to EBIT and Underlying Profit
APPENDIX 2 Reconciliation to EBIT and Underlying Profit For personal use only ALE ALE ALE Garden Settlers Corporate TOTAL Develop. Operations Total Villages (DMF) (A$m) (Rental) Rental income - 15.3 15.3 12.0 0.3 - 27.6 Accrued DMF fee income - - - - 2.5 - 2.5 Manufactured home sales 15.4 - 15.4 - -
Slide 26: Cashflow in Detail
APPENDIX 3 Cashflow in detail For personal use only (A$m) 31 Dec 2015 31 Dec 2014 Opening cash at 1 July 15.1 14.6 Rental and other property income 36.4 27.4 Net cashflow associated with manufactured home development 3.5 (2.2) Net borrowing costs paid (2.5) (2.2) Income tax received/(paid) - 0.8 All
Slide 27: Balance Sheet
APPENDIX 4 Balance sheet For personal use only 31 Dec 30 June (A$m) 2015 2015 Cash 10.4 15.1 Inventory 15.2 13.2 Investment property and property under development 672.0 539.7 Other assets 19.4 15.7 Assets held for sale - 61.6 Total assets 717.0 645.3 Borrowings 124.0 66.8 Derivatives - - Retirement
Slide 28: Competitor Landscape - Lifestyle Parks
APPENDIX 5 Competitor landscape - Lifestyle Parks Major Operators No. of parks Locations Capital strategy For personal use only Active Lifestyle Estates 26 NSW, VIC and SE Acquire lifestyle and tourism parks and undertake greenfield development. (Ingenia) QLD Tourism and Mining Park Operators Discov
Slide 29: Contact Information
CONTACT INFORMATION For personal use only SIMON OWEN CEO & Managing Director Tel: +61 2 8263 0501 Mob: +61 412 389 339 sowen@ingeniacommunities.com.au DONNA BYRNE Group Investor Relations Manager Tel: +61 2 8263 0507 Mob: +61 401 711 542 dbyrne@ingeniacommunities.com.au INGENIA COMMUNITIES GROUP Lev
Slide 30: Disclaimer
DISCLAIMER For personal use only This presentation was prepared by Ingenia Communities Holdings The forward looking statements included in this presentation involve Limited (ACN 154 444 925) and Ingenia Communities RE Limited subjective judgment and analysis and are subject to significant (ACN 154 4
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